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Western Digital's Evans said Arkeia Network Backup v10.0 this month became generally available. The new version differs from version 9 mainly in its new, easier-to-use Web interface and its new "seed and feed" function that lets SMBs do their initial backup and any future large follow-up backups on a USB drive or array to eliminate the need to do those backups over several days over the Internet. Data restores can also be done using the USB devices, he said.

Evans said Arkeia, which has been cash-flow positive since 2008 and profitable since 2011, was not looking to get acquired.

"Arkeia wanted to dominate the backup market and had the right product," he said. "But it wasn't growing as fast as it wanted to. We decided we needed a partnership to boost growth."

Western Digital's Gallivan said the acquisition closed on Dec. 19, but it was not officially announced until Tuesday because of the holiday season and this month's Consumer Electronics Show. He said Western Digital did not disclose the price of the acquisition.

Going forward, Arkeia in the short term will be known as "Arkeia, a WD Company," Gallivan said. What happens to the Arkeia name in the future has yet to be determined, he said.